Malawi - Entrepreneurship Development And Drought Recovery Program : Credit 2396 - Credit Agreement - 4 - Conformed

CREDIT NUMBER 2396 MAI (Fourth Amendment) Fourth Agreement Amending Development Credit Agreement (Entrepreneurship Developoent and Drought Recovery Program) between REPUBLIC OF MALAWI and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated a 1995 J+#/4 1,c~ CREDIT NUMBER 2396 MAI (Fourth Amendment) FOURTH AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, doted 44ALky 2o , 1995, between REPUBLIC OF MALAWI (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCLATION (the Association). WHEREAS: (A) the Borrower and the Association have entered into a DaveloDment Credit Agreement (Entrepreneurship Development and Drought Recovery Program), dated July 2, 1992 (the Development Cre,it Agreement) for the purpose of assisting in the financing of the program referred to in Recital (A) of the Preamble to the Development Credit Agreement (the Program); (B) the Borrower and the Association have entered into an agreement dated February 9, 1993 (the First Amending Agreement), a second agreement dated February 18, 1994 (the Second Amending Agreement), and a third agreement dated November 16, 1994 (the Third Amending Agreement), all amending the Development Credit Agreement for the purpose o- providing the Borrower with additional assistance in the financiag of the Program; (C) the Borrower has requested the Association to provide further addLtional assistance towards the financing of the Program by increasing the amount made available under the Development Credit Agreement by an am.-unt in various currencies equivalent to three million :wo hundred thousand Special Drawing Rights (SDR 3,200,000); and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to provide such further additional assistance to the Borrower 'tpon the terms and conditions set forth in this Agreament; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I Amendments of the Development Credit Agreement Section 1.01. Section 1.02 of the Development Credit Agreement is amended by the deletion of the word "and" at the end of Subsection (e), substituting "; and" for "." at the end of Subsection (f) and adding a new Subsection (g) as follows: -2- "(g) "Fourth Amending Agreement" means the Fourth Agreement Amending the Development Credit Agreement (Entrepreneurship Development and Drought Recovery Program) between the Borrower and the Association, dated , -& 1991". Section 1.02. Section 2.01 of the Development Credit Agreement is amended to read as follows: "Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions set forth or referred to in the Development Credit Agreement, an amount in various currancies equivalent to one hundred twenty-three million five hundred ninety thousand Special Drawing Rights (SDR 123,590,000) (the Credit), which includes an original amount in various currencies equivalent to eighty-five million four hundred thousand Special Drawing Rights (SDR 85,400,000) and four additional amounts in various currencies equivalent to four million two hundred ninety thousand Special Drawing Rights (SDR 4,290,000) (the First Additional Financing), three million one hundred thousand Special Drawing Rights (SDR 3,100,000) (the Second Additional Financing), twenty- seven million six hundir.ed thousand Special Drawing Rights (SDR 27,600,000) (the Third Additional Financing) and three million two hundred thousand Special Drawing Rights (SDR 3,200,000) (the Fourth Additional Financing)." Section 1.03. A proviso is added at the end of Section 2.04 (b) of the Development Credit agreement reading as follows: "; provided, hcwever, that any commitment charge on the First Additional Financing shall accrue from April 10, 1993; that any commitment charge on the Second Additional Firincing shall accrue from April 19, 1994; that any comm,tmenz. charge on the Third Additional Financing shall accrue from January 17, 1995 and that any commitment charge on the Fourth Additional Financing shall accrue from a day sixty (60) days after the date of the Fourth Amending Agreement." - 3 - Section 1.04. The table set forth in paragraph 1 of Schedule I to the Development Credit Agreement is amended to read as follows Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Goods to be 100% of foreign financed: expenditures (a) under the Third 27,600,000 Additional Financing (b) under the Fourth 3,200,000 Additional Financing (2) Othe- Goods: 100% of foreign expenditures (a) Food imports 28,400,000 (b) Other imports 63,300,000 (3) Consultants' 1,090,000 100% services TOTAL 123,590,000 Section 1.05. The following paragraph is added at the end of Schedule 1 to the Development Credit Agreement: "10. After a date twelve (12) months from the date of this Fourth Agreement Amending the Devel-)pment Credit Agreement, no withdrawals shall be made and no commitment shall be entered into to pay amounts to, or on the order of, the Borrower in respect of expenditures to be financet' out of the proceeds of the Fourth Addit4onal Financing. At ny time after such date, thc Association may, by notice to the Borrcwer, cancel the unvithdrawn amount of the Fourth -4- Additional Financing from the Credit Account or any part thereof", ARTICLE II Effective Date; Termination Section 2.01. This Amending Agreement shall not become effective until evidence satisfactory to the Association shall have been furnished to the Association that the execution and delivery of this Amending Agreement on behalf of the Borrower have been duly authorized or ratified by all necessary governmental action. Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this Amending Agreement, there shall be furnished to the Association an opinion or opinions satisfactory to the Association of counsel acceptable to the Association showing, on behalf of the Borrower, that this Agreement has been duly authorized or ratified by, and executed and delivered on behalf of, the Borrower and is legally binding uoon the Borrower in accordance with its terms. Section 2.03. This Amending Agreement shall come into force and effect on the date upon which the Association shall dispatch to che Borrower notice of its acceptance of the evidence required by Section 2.01 of this Amending Agreement. Secti-..a 2.04. If this Amending Agreement shall not have come into force and effect by a date ninety (90) days after the date of this Amending Agreement, this Amending Agreement and all obligations of the parties hereunder shall terminate, unless the Association establishes a later date for the purposes of this Section. If this Amending Agreement shall terminate under the provisions of this Section, the Development Credit Agreement, as amended to the date of this Amending Agreement, shall continue in full force and effect, as if thi.; Amending Agreement had not been executed. -5- IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. REPUBLIC OF MALAWI By V, j/,L ,, ti A L'~U Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By *~~x.~d,.4 ( /(7' Regioral Vice President Africa I INTERNATIONAL DEVELOPMENT ASSOCIATION CERTIFICATE I hereby certify tha: the foregoing is a true copy of the orignal in the archives of the International Development Association. FOR SECRETARY